When Increases in the Values of One Variable Are Associated

question 22

Multiple Choice

When increases in the values of one variable are associated with decreases in the values of a second variable,what type of relationship is present?

• A) Positive
• B) No relationship
• C) Negative
• D) Curvilinear

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Definitions:

Output

Refers to the total amount of goods or services produced by an entity in a given period.

Production Function

A mathematical relationship that describes the maximum amount of output that can be produced from a given set of inputs under certain technology.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.

Marginal Product

The increase in output resulting from a one-unit increase in the input, keeping all other inputs constant.